Because decisions made by the State Legislature impact not only your livelihood, but your customer’s access to mortgage money as well. We, as TMBA members, have a responsibility to protect not only our businesses, but an availability of competitive mortgage money to consumers. By being a TMBA member and a part of the TMBA Advocacy efforts, you have the opportunity to get involved and speak up!
The TMBA has been successful in blocking legislation that could have created additional burdensome regulation on accessing affordable home loans and that could have affected a 1st lien priority position. Examples of previously successful legislation include:
2023 Legislature Action—TMBA’s efforts protect and further the interests of mortgage lenders:
- Advocated to amend HB 4635 (related to organized crime) before passage. The amendment corrected the definition of “unlawful debt,” which, as filed, could have resulted in racketeering and felony prosecution of violators for mere technical and inadvertent violations of the Finance Code. After intense opposition by the TMBA and other groups, this new law was revised to track the federal RICO statute definition and avoid unjust prosecution of minor violations.
- Clarified the penalty provisions of a new law that requires mortgage servicers provide borrowers/file a release of lien in the real property records within specific time periods after payoff. As a result, violations of these new requirements will not result in harsher penalties.
- Supported the passage of HB 207, which excludes certain conveyances of homestead property from the definition of a “pretend sale.” The final version of HB 207 included amendments proposed by the TMBA to clarify homestead property may also be disclaimed or abandoned per existing law, preserving the validity of certain transactions made before the new law was enacted.
- A bill was passed to authorize and establish procedures for remote online notarization of “wet ink” signatures (RIN)). TMBA collaborated with title company colleagues to ensure that the new law maintains the safeguards in our online notary statute and to ensure that definitions used in the amendments adopted language consistent with definitions in other law.
- Supported the passage of HB 2127 which prohibits local governments from passing ordinances governed by the Finance Code. Accordingly, municipalities will not be able to attempt to regulate mortgage origination, impose Community Reinvestment standards, or impose foreclosure moratoriums.
- Opposed several bills that did not pass (as of today’s date) related to the restriction of foreign ownership of Texas real estate. Real Estate Industry trade associations, including the lender trade associations, were aligned in opposing all but one of these bills because of concern that the bills violated both the US and Texas Constitution relating to equal protection of law, the federal Fair Housing Act, and the Equal Credit Opportunity Act.
- Opposed HB 2632 related to the advertising of reverse mortgages. As written, the bill purported to curtail deceptive advertising for reverse mortgages, but would have imposed an unworkable and completely subjective standard for what would be considered deceptive or misleading. The bill did not move.